On Beckmann's Dispersed "Interaction City"
Beckmann's interaction model has each resident touching base in face-to-face activity with every other resident, per unit time, at the other's residence. We re-work his resulting "interaction city" with each resident "operating with" a Cobb-Douglas utility function. We then turn to a more satisfactory "technology" of residents interacting and solve for an interaction city with an explicit payoff to resident i for engaging in interaction.
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- Marcus Berliant & Robert R. Reed III & Ping Wang, 2005.
"Knowledge Exchange, Matching, and Agglomeration,"
0506013, EconWPA, revised 07 Jul 2005.
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